Malaysia's palm oil giant FGV swings to profit in Q1 earnings
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
MALAYSIAN palm oil planter FGV reported on Tuesday (May 31) it swung to a profit in the first quarter, helped by higher crude palm oil prices and improved sales volume.
Net profit during the January-March period rose to RM369.2 million (S$115.5 million), compared to a loss of RM35.4 million in the same quarter last year. Revenue jumped 73 per cent to RM5.85 billion.
“With the group continuing to focus on its core businesses, the board is confident that the elevated crude palm oil price will have a positive impact on the group’s financial result for 2022,” the firm said in a bourse filing.
A cocktail of supply disruptions in global edible oils due to Russia’s invasion of Ukraine, labour shortages in Malaysia and export restrictions in top producer Indonesia have pushed benchmark crude palm oil (CPO) prices to record highs of more than RM7,000 a tonne this year.
“The supply disruption of competing edible oils caused by the Ukraine war is expected to maintain the CPO price at RM4,500 to RM5,000 per metric tonne in 2022,” FGV, the world’s largest crude palm oil producer, said.
The contract traded at RM6,270 on Tuesday.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
FGV said while labour shortage remained critical, there should be a gradual recovery this year as workers are expected to arrive from the third quarter onwards.
The Malaysian Palm Oil Association (MPOA) sees about 52,000 migrant workers arriving by the end of the year, but warned that this would be too little, too late for output to rebound in the world’s second-largest producer. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
